Variable Costs and the Visible Hand: the Re‐Regulation of Electricity Supply, 1932–37

C-Tier
Journal: Economica
Year: 1997
Volume: 64
Issue: 253
Pages: 15-30

Authors (2)

James S. Foreman‐Peck (not in RePEc) Christopher J. Hammond (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Under an Act of 1926, a ‘public interest’ corporation, the CEB, was empowered to build a national transmission grid and rationalize UK electricity generation. A constrained cost model estimates the gains from this re‐regulation of the electricity generating industry. The new regime reduced costs by one‐third, radically improving the utilization of capital and boosting the average scale of operations. It did so by persuading private and municipal enterprises to accept central direction of the extent and timing of their electricity generation. This voluntarism saved on enforcement costs, but perhaps one‐half of the industry cost reduction the CEB actually achieved by 1937 was apparently forgone.

Technical Details

RePEc Handle
repec:bla:econom:v:64:y:1997:i:253:p:15-30
Journal Field
General
Author Count
2
Added to Database
2026-01-25